For decades, procurement occupied a largely functional corner of the advertising business, working behind the scenes to negotiate fees, manage contracts, control expenditure and ensure that marketing departments remained within approved budgets. Its influence was therefore often measured by the savings it delivered rather than by the broader contribution it made to marketing performance.
That picture, however, is changing as the economics of advertising become more complicated and advertisers demand greater accountability from every part of the marketing supply chain.
Increasingly, procurement is moving closer to the heart of marketing investment decisions, not because its traditional responsibilities have disappeared, but because the questions surrounding advertising expenditure have become much broader. Brands now operate across agencies, media platforms, technology providers, production companies, data businesses and other specialist suppliers. Consequently, the ability to negotiate a lower price represents only one part of the commercial equation.
More importantly, procurement teams are being asked to understand whether the money being committed is producing appropriate value, whether commercial arrangements support marketing objectives and whether the organisation has enough visibility to determine how its investment is being deployed.
Evidence from the World Federation of Advertisers (WFA) illustrates the scale of that change. Its 2024 research, based on responses from 51 senior marketing procurement executives at global multinationals collectively responsible for $114 billion in annual marketing expenditure, found that 85 percent expected to add more value beyond savings in 2024. Another 13 percent expected to deliver a similar balance of value and savings, whereas only 2 percent expected savings to outweigh broader value creation.
Significantly, those findings reveal that procurement itself is reconsidering how success should be defined. Previously, a procurement team could point to a negotiated reduction in agency fees or media costs as evidence of performance. Now, the conversation is widening towards effectiveness, efficiency, transparency and the quality of the commercial relationships supporting marketing activity.
Alongside that shift, the WFA has been developing a voluntary four stage framework through its Global Sourcing Board to help marketing procurement move from tactical involvement towards best in class collaboration, with the ambition of establishing procurement as a trusted partner in global brand investment strategy, from sourcing to resourcing.
At the same time, the areas attracting procurement attention are becoming broader. WFA research found that media accounted for 64 percent of the main focus for hard savings in 2023, while creative accounted for 19 percent and production 11 percent in the areas being examined for 2024. The organisation also identified technological developments, including generative AI, as part of the changing environment around creative and production.
Against this backdrop, the traditional image of procurement as the department that simply asks, “How much does it cost?” is becoming increasingly inadequate.
Instead, the more consequential question is becoming, “What is the organisation receiving for the investment, and how effectively can that value be demonstrated?”
That distinction is particularly important in advertising because marketing services rarely function like conventional commodities. A lower price can be measured immediately, whereas the consequences of creative quality, strategic expertise, media effectiveness, production capability or technological performance may extend far beyond the invoice.
For that reason, procurement’s expanding role requires a stronger understanding of marketing itself. Indeed, the WFA found that only 52 percent of respondents said the people who set their procurement targets possessed good or very good knowledge of marketing. The organisation warned that blunt or disconnected objectives could make it harder for procurement teams to work effectively with marketers and deliver genuine value.
This knowledge gap matters because the procurement function cannot effectively evaluate marketing investment if it understands only the financial side of the transaction.
Equally important, marketers cannot fully address the commercial complexity of modern advertising if procurement enters the process only after strategic decisions have already been made. That is why timing has become an important part of the debate.
When procurement joins a sourcing exercise at the beginning, it can help establish appropriate commercial structures, clarify requirements, define responsibilities and identify potential risks before the organisation commits substantial resources. When it enters much later, its options can become narrower because key strategic and operational decisions may already have been made.
The Association of National Advertisers (ANA) reached a similar conclusion in its 2022 research on marketing procurement. The study found improvements in the relationship between marketing and procurement compared with the organisation’s earlier research, including movement towards viewing marketing as an investment to be optimised rather than merely an expense to be minimised. Nevertheless, the research also revealed that the relationship between procurement and agencies remained considerably more complicated.
For instance, 54 percent of procurement respondents described their relationship with agencies as extremely or very healthy, while only 15 percent of agencies gave the same assessment. Furthermore, procurement respondents were more likely to define value around growth and impact, whereas agencies continued to perceive procurement as more focused on lowest cost.
This divergence exposes one of the central tensions surrounding procurement in advertising. On one side, advertisers need commercial discipline. On the other, agencies operate in an environment where expertise, creativity, strategic thinking and quality can determine the effectiveness of the work. If those two perspectives fail to meet, procurement can be perceived as an obstacle rather than an enabler.
By comparison, a better aligned approach can place procurement much earlier in the marketing process, allowing financial discipline and marketing objectives to develop together rather than compete with one another. Agency selection provides a useful illustration.
The ANA has recommended that procurement should understand the distinctive nature of advertising, become involved early, remain engaged throughout the process, work more closely with marketing and focus more on value than cost. The organisation has also called for greater alignment between the objectives of marketing and procurement.
In practical terms, that means procurement should not simply arrive at the end of an agency search to negotiate the final commercial terms. Instead, its participation can begin with understanding the scope of work, the required capabilities, the commercial model, the performance expectations and the responsibilities of each party.
From there, procurement can contribute to clearer supplier structures while marketing retains responsibility for the strategic and creative dimensions of the assignment. Beyond agency relationships, media is providing another powerful reason for procurement to become more deeply involved.
Programmatic advertising has created increasingly complex supply chains involving advertisers, agencies, demand side platforms, supply side platforms, publishers, verification providers and other intermediaries. As the number of participants increases, so does the difficulty of establishing where advertising money travels and how much of that investment produces meaningful media value.
The ANA’s ongoing Programmatic Transparency Benchmark has therefore become an important reference point for advertisers seeking greater visibility into the programmatic supply chain. The organisation says the benchmark uses log level data to help marketers assess cost efficiency, media quality and optimisation opportunities.
More recently, the ANA’s Q2 2026 benchmark found that working media efficiency continued to improve, while pricing efficiency moved in the opposite direction. The organisation concluded that programmatic efficiency depends on the ability to manage quality, price, measurement and supply curation at scale rather than relying on traditional transaction cost measures alone.
Earlier in 2026, the ANA reported another significant finding from its Q1 benchmark. Higher performing advertisers converted 54 percent of programmatic spend into qualified impressions, compared with 32.1 percent among the lower performing group. The organisation described the resulting gap as evidence that quality, rather than cost alone, is increasingly important to programmatic performance.
These findings give procurement a considerably larger role in media accountability. Rather than asking only whether an advertiser negotiated a competitive media price, procurement can help examine whether the supply chain is transparent, whether contracts provide sufficient access to information, whether suppliers can be audited and whether commercial arrangements enable the organisation to evaluate performance. In much the same way, marketing technology is expanding the procurement brief.
Data platforms, measurement systems, verification services and other marketing technologies have introduced new commercial relationships that require attention to pricing, contracts, data access, governance and performance. As technology becomes more deeply integrated into marketing operations, procurement has to understand not only what a platform costs but also what capabilities it provides and how its commercial structure fits the organisation’s wider marketing objectives.
Meanwhile, the rise of generative AI is adding another dimension to the equation. As AI changes how creative and production work can be developed, procurement may increasingly encounter questions around scope, supplier capability, intellectual property, production models and the division of responsibilities between internal teams, agencies and technology providers. That development makes simplistic cost comparisons even less useful.
Two suppliers may offer apparently similar services at different prices while providing materially different capabilities, workflows, technologies or levels of expertise. Without an understanding of what the marketing organisation actually needs, procurement may secure a cheaper arrangement without necessarily securing equivalent value.
For this reason, collaboration becomes central to the new procurement model. Marketing understands the brand challenge and consumer objective. Creative teams understand the quality and capability required to solve that challenge. Media specialists understand audience delivery and performance. Technology teams understand platforms and data. Finance understands the broader financial environment. Procurement brings commercial discipline, supplier management, sourcing expertise and contractual oversight into that mix.
Rather than separating these responsibilities into competing territories, organisations increasingly need them to work as interconnected parts of the same investment process. Even so, the tension surrounding procurement has not disappeared.
The ANA’s research shows that significant perception gaps remain between procurement and agencies, despite improvements in the relationship between marketing and procurement. Procurement professionals were substantially more likely than agencies to say they understood the economic value of successful marketing and to describe themselves as knowledgeable about advertising and marketing.
That difference in perception can influence how commercial conversations unfold. If an agency believes procurement is primarily concerned with reducing its fee, negotiations can become defensive. If procurement believes agencies are insufficiently transparent about costs or performance, scrutiny can intensify. If marketers operate separately from both sides, the organisation can end up with three groups pursuing different interpretations of value.
Conversely, when objectives are aligned from the outset, procurement can become a facilitator of better commercial decisions rather than a final stage approval mechanism.
The WFA’s research points in that direction by showing that procurement itself increasingly wants its contribution measured through broader value rather than savings alone. Its 85 percent finding is particularly revealing because it indicates how far the function’s own definition of success is moving beyond traditional cost reduction.
What emerges, therefore, is not the disappearance of cost control but its repositioning. Savings still matter. Commercial discipline still matters. Negotiation still matters. However, those responsibilities now sit within a wider framework that includes performance, transparency, risk, quality, supplier relationships and measurable business value. That broader remit also explains why procurement is increasingly becoming relevant to the entire marketing supply chain.
Whether the organisation is appointing an agency, buying media, commissioning production, contracting technology or managing programmatic supply, the commercial question now intersects with questions about effectiveness and accountability.
Accordingly, procurement is no longer confined to the purchasing end of advertising. It is becoming involved in how marketing investments are structured before they are spent, how supplier relationships are governed while work is being delivered and how expenditure can be examined after the campaign has run.
At another level, that change reflects a fundamental transformation in the advertising economy itself.
The modern marketer is managing a much more fragmented ecosystem than the traditional advertiser did. Agencies can coexist with internal teams. Specialist partners can work alongside full service agencies. Technology companies can influence media execution. Data providers can shape targeting and measurement. Production models can incorporate new forms of AI enabled creation.
Under those conditions, commercial oversight cannot remain isolated from marketing strategy.
The procurement function consequently has to understand the architecture of the marketing ecosystem if it is to manage the commercial relationships within it effectively.
What this means for agencies is equally significant. Agencies may increasingly need to demonstrate not only the quality of their creative or strategic work but also the logic behind their pricing, resource models, scopes of work and performance arrangements. Clearer commercial structures can make relationships easier to manage while reducing ambiguity about what each party is expected to deliver.
For marketers, the development creates an opportunity to involve procurement without surrendering strategic control. For procurement professionals, meanwhile, the challenge is to develop enough marketing knowledge to distinguish between a genuine opportunity for efficiency and a reduction that could undermine the quality or effectiveness of the work.
The direction of travel is therefore clear from the available industry research: procurement is being drawn closer to the substance of advertising investment.
The WFA’s evidence shows procurement teams seeking metrics that recognise value beyond savings, while ANA research demonstrates both progress and continuing friction between procurement, marketing and agencies. Current ANA programmatic benchmarks add another dimension by showing that media efficiency increasingly depends on quality, measurement and supply management rather than transaction costs alone.
In the final analysis, the changing role of procurement does not mean that marketing and procurement have become the same function. Rather, each retains a distinct responsibility. Marketing must define the business and brand challenge. Agencies and specialist partners must provide the expertise required to address it.
Finance must consider the wider financial implications. Technology teams must help manage increasingly complex systems and data. Procurement must help ensure that the organisation structures its supplier relationships, contracts and expenditure in ways that support the objectives being pursued.
That is a considerably broader mandate than negotiating a lower invoice. More than anything else, the transformation shows that advertising procurement is moving from a narrow purchasing function towards a more integrated role in investment governance.
The question facing brands is no longer simply how much they can save when buying marketing services. Instead, the deeper commercial question is how effectively they can organise, scrutinise and manage every naira or dollar committed to the marketing ecosystem.
In that changing equation, procurement is no longer sitting at the edge of the advertising conversation. It is increasingly becoming part of the conversation about what brands buy, how they buy it, how suppliers are held accountable and how marketing investment can be connected to measurable value.





Comment
No comments found.